Questions to Ask Before Signing a Management Agreement

Why the Agreement Matters More Than the Pitch

The management agreement governs your entire relationship with your manager. It determines what you pay, what you get, how long you’re committed, and what happens if things don’t work out. Most owners spend hours evaluating managers through calls and website research, then spend minutes reading the contract. That’s backwards.

The pitch tells you what the manager wants you to hear. The contract tells you what actually happens. Before you sign anything, ask these questions and get the answers in the contract itself — not verbally, not in an email.

1. What Exactly Is Included in the Fee?

Get a line-item list. Not “full service.” The actual services. Listing creation? Ongoing listing optimization and A/B testing? Dynamic pricing with human oversight or just a tool on autopilot? Guest communication 24/7? Cleaning coordination? Maintenance management? Preventive maintenance? Financial reporting? Tax collection? Regulatory compliance? Photography?

If they say “everything is included,” ask: “Does that mean cleaning costs come out of the fee or are they billed separately?” That one question clarifies most of what you need to know.

2. What Costs Are Billed Separately?

Every management company has costs outside the fee. Common separate charges: cleaning ($150-350 per turnover), maintenance vendor invoices, supplies and restocking, photography, linen service, technology fees (smart locks, noise monitors), seasonal deep cleaning, landscaping, and pool/hot tub service.

These separate charges can total $15,000-25,000/year. That’s a real cost of operating a vacation rental. If you’re comparing a 20% fee that bills cleaning separately to a 30% fee that includes everything, factor in these costs for an accurate comparison.

3. How Long Is the Contract?

Month-to-month, 6 months, 12 months, 2 years — every structure exists. Shorter contracts feel less risky. Longer contracts let the manager invest more heavily because they’ll be around to see the return. The sweet spot is usually 6-12 months with clear performance expectations and reasonable exit terms.

4. What’s the Termination Process?

How much notice is required? 30, 60, or 90 days? Is there an early termination fee? What happens to the management fee during the notice period? Read this section word for word. It’s the section that matters most if things don’t work out.

5. Who Owns the Listing and Reviews?

On Airbnb, if the manager created the listing under their host account, the listing and all reviews belong to them. If you leave, those reviews don’t follow you. You start from scratch. Ask specifically: “Will my listing be under my account or yours?” The right answer is yours.

6. What Happens to Confirmed Bookings?

If you terminate, what happens to guests who’ve booked future dates? Are those bookings honored? Who manages guest communication during the transition? Who collects the fee on those stays? A good agreement addresses this clearly. A bad one leaves it ambiguous.

7. How Do You Optimize After Launch?

Ask for specific examples of changes they’ve made to other listings in the past 30 days. If they give you specifics — title tests, photo changes, pricing adjustments — optimization is real. If they give generalities, it’s probably set-and-forget.

8-10: Communication, Technology, Fee Calculation

How often will you hear from them proactively? Monthly is good. Quarterly is acceptable. “When you have a question” is not proactive management. What technology will you have access to? A real-time owner portal is the standard in 2026. How is the fee calculated? Gross revenue before platform commissions or net after? Before or after cleaning fees? The calculation method changes the effective percentage significantly.

The Bottom Line

A management agreement should be clear enough that you can explain every term to your spouse or business partner in plain English. If any section is confusing, ask for clarification before signing — not after. And if it’s not in the contract, it’s not guaranteed.